In the table, should be Norm. 2023 PE, not 2022. Forgot to update it. 2022 is probably going to be a slaughterhouse for a lot of those stocks due to zero Covid. FYI :) .
"Controlled companies" are also a huge issue in Brazil, Philippines (e.g. when I hear certain family names being associated with a company local or non-local media might be touting, I literally start laughing!!!), and many other markets BUT one must remember that most big Silicon Valley tech names are also controlled companies... And things are not much better there! (e.g. think Twitter and bots vs real users OR members of the media being on a certain company payrolls!)
i have narrowed down my hk review to these four schloss type situations, would be interested to know if you see any red flags.... HKSE:00050, HKSE:00212, HKSE:00289, HKSE:00662 thanks......
good post, hk getting cheaper and cheaper........ looking at some profitable large tbv discount situations, hard to believe how cheap some of these are.... for example 6686 (noah) or 889 (datronix)...wonder what you think of these....
A recent reminder of what can to wrong is a holding in Tianyun International. Food processing business in China. Trading stopped in April 2022 due to fraud at a subsidiary. These positions need to be sized appropriately given the risks involved.
In the table, should be Norm. 2023 PE, not 2022. Forgot to update it. 2022 is probably going to be a slaughterhouse for a lot of those stocks due to zero Covid. FYI :) .
Great advice article - I linked to it at https://emergingmarketskeptic.substack.com/p/emerging-markets-week-may-16-2022?s=w and on my site under tips http://www.emergingmarketskeptic.com/category/frontier-market-emerging-market-investing-tips/ as its relevant for many "emerging" markets - not just HK...
"Controlled companies" are also a huge issue in Brazil, Philippines (e.g. when I hear certain family names being associated with a company local or non-local media might be touting, I literally start laughing!!!), and many other markets BUT one must remember that most big Silicon Valley tech names are also controlled companies... And things are not much better there! (e.g. think Twitter and bots vs real users OR members of the media being on a certain company payrolls!)
i have narrowed down my hk review to these four schloss type situations, would be interested to know if you see any red flags.... HKSE:00050, HKSE:00212, HKSE:00289, HKSE:00662 thanks......
good post, hk getting cheaper and cheaper........ looking at some profitable large tbv discount situations, hard to believe how cheap some of these are.... for example 6686 (noah) or 889 (datronix)...wonder what you think of these....
A recent reminder of what can to wrong is a holding in Tianyun International. Food processing business in China. Trading stopped in April 2022 due to fraud at a subsidiary. These positions need to be sized appropriately given the risks involved.
A really excellent writeup. It summarizes very well my experience of investing in HK stocks for the past 12 years.
Thanks for this interesting article. Some queries:
1/ Which data source do you use for calculating your normalised P/e range and other metrics?
2/ Low liquidity can be good for individual investors ...but *no* liquidity can be a challenge!
Eg; K&P Int (#675) is quoted at $0.85 and due to pay a $0.08 (9.4%) final dividend at
the end of May ....but it had *zero* shares traded on Friday 13/May.
just curious if you have looked at 6686 (noah) or 889 (datronix) both look exceptionally cheap....
Im in Jiashili and Greatview and punished. I still think they are honest businesses so hopefully some appreciation at some stage :)